CO129-470 - Public Offices - 1921 — Page 507

504

36

station which could communicate with India, and this would in time pay for itself. From this bare outline of the committee's report. I think you can form an idea about the question of a powerful wireless station for Hong Kong. It is a question which has to be gone into very carefully. You have to find out what traffic you will get and whether it will pay."

THE DOLLAR versus THE TAEL.

Need of a Mint in Shanghai under Efficient Control.

It was unanimously agreed-

That this conference welcomes the indications which the Chinese Government has given of its intention to open a mint in Shanghai, but would emphasise the absolute necessity of the employment of foreign experts with a view to ensuring the production and maintenance of a standard currency capable of replacing sycee.'

In moving this resolution on behalf of the Shanghai Chamber, Mr. G. H. Stitt, manager of the Hong Kong and Shanghai Bank, Shanghai, said :-

ז.

In proposing a resolution, which was unanimously passed at the last conference of British Chambers of Commerce, to the effect that the Chinese Govern- ment be urged to open a mint in Shanghai under efficient control, Mr. A. G. Stephen gave some quotations from memorials urging a general reorganisation of the currency of the country, which were presented to the Throne by the Ministry of Finance in 1911. I need not repeat these quotations now, as they will be found on page 284 of the British Chamber of Commerce Journal for 1919. Suffice it to say that the views expressed in them, including a recommendation that expert assayers should be engaged, were sound, and it is more than a pity that they have apparently been consigned to oblivion and that the excellent programme therein outlined has never been carried out.

L

13

The resolution passed by the conference a year ago was duly brought to the notice and recommended to the favourable consideration of the Chinese Government by His Majesty's Minister, Peking.

The following memorandum, drawn up by the Shanghai Foreign Exchange Bankers' Association, was also forwarded to the Ministry of Finance, Peking, in the early part of this year, a copy being sent to His Majesty's Minister :-

The foreign exchange banks have heard that a resolution was passed at the conference of the British Chambers of Commerce held in Shanghai last November, to the following effect :—-

That the Chinese Government be strongly urged to bring an end to the use of sycee: to establish a uniform currency of dollars, subsidiary silver and copper coinage throughout the country to open a mint in Shanghai for the free coinage of dollars and to place the mints under efficient control, so that uniformity of standard may be preserved.'

The foreign exchange banks have also been informed that His Majesty's Minister has recommended this resolution to the Chinese Government, and it is reported in the public press that the Government is according favourable considera- tion to it.

"In October, 1917. the foreign exchange banks' representatives had the privilege of exchanging views on this subject with Messrs. Wang and Yee, of the Ministry of Finance, and on that occasion they put their views on record in the following words :—

The banks recognise the great advantage that would ensue to trade generally by the entire abolition of the tael and the substitution therefor of a uniform Chinese silver dollar which would be currency throughout China, and although this would deprive the bank of a certain profit which they at present secure from interport exchange, they are so convinced that the change would be of such ultimate benefit to trade and to themselves that the Government may count on their whole-hearted support to the measures necessary to bring this

about.

37

In the adoption of a uniform Chinese dollar it is absolutely essential that care should be taken that whatever weight and fineness is decided upon, that weight and fineness must be as invariable and as reliable as the weight and fineness of a British sovereign, or of the current gold coins of other countries. The dollars coined by the Chinese mints have not been of uniform fineness and composition, and to establish general confidence in the new Chinese dollar expert foreign supervision in the mints would be necessary, for a time at least.

The exchange of sycee and of Mexican dollars for the new dollar should present no difficulties, but it would be necessary that a mint should be established in Shanghai, which is the principal port of entry for silver from abroad and the source from which most other treaty ports derive their supplies of currency."

The foreign exchange banks have seen no reason to change the views as expressed above, and they wish therefore to record their support to the resolution of the British Chambers of Commerce.

"The following suggestions may be of use to the Chinese Government if they decide to give effect to the resolution:-

"1. The mint should be established within easy distance of the business centre of the international settlement of Shanghai, and should be under the direct control of the Central Government.

"2. The control should be vested in the hands of a Chinese director-general,

with a foreign associate director-general.

To ensure uniformity of coinage and proper workmanship, also the efficient handling of silver tendered to the nint, it would be necessary to employ two foreign assayers, three inspectors and one

accountant.

*

Note. When the Japanese Government first began minting coins, which went into circulation in the cast in competition with the coins of foreign countries, they employed ten foreign experts. There is, however, so much efficient Chinese labour available which is skilled in the handling of metals. that we consider a minimum of foreign supervision would be sufficient.

"3. The mint should be capable of manufacturing 1,000,000 coins daily. One

million dollars or half dollars daily.

42

4. When it is in full working order, the coinage of dollars must be discontinued by the other mints in China, unless these mints are controlled by the Central Government and placed under expert foreign supervision, similar to that of the Shanghai mint.

"5. A new die should be made so that the new dollars will be readily

distinguishable from those already in circulation. "6. Silver should be tendered direct by the banks and the public to the mint, which, in order to simplify the procedure, can stipulate that no silver under 890 fine will be received for coinage.

"Dollars should be delivered by the mint to the banks and the public in the same rotation as the silver has been received.

"7. With regard to the weight and fineness of the new dollar, in view of the considerable quantities of provincial mint dollars already in circulation, it would be desirable that the new coin should approximate as closely to them as possible, in order that no discrimination would be made by the public against one or other of the coins.

From a series of tests made at the Indian Government mint at Bombay, it has been ascertained that the Nanking mint dollars, although very uneven, average 891-15 fine and weigh 414-589 grains.

These dollars are considered to be equal to those coined by the Tien-tsin and Wuchang mints. The new coin might, therefore, be fixed at 416 grains weight, 890 fine, and it should be received at par with the existing recognised dollars by the Government and the public. The mint should, however, be prepared to recoin the existing dollars into the new dollar free coins.

"8. As it is not proposed to consider the question of subsidiary coinage at this time, the foreign exchange banks are of opinion that it would be a public convenience if a half dollar were coined, the weight and fineness of which should correspond with the dollar, viz., 208 grains weight and 890 fine, (5815 c-8]

L